HYD vs SPY
VanEck High Yield Muni ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. HYD offers more diversification with 1,887 holdings.
Side-by-Side Comparison
| Metric | HYD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.09% | |
| AUM | $4.5B | $821.1B | |
| Dividend Yield | 4.36% | 1.01% | |
| Holdings | 1,887 | 505 | |
| YTD Return | -1.37% | +14.24% | |
| 1Y Return | +4.04% | +21.71% | |
| 3Y Return (annualized) | +3.20% | +22.10% | |
| 5Y Return (annualized) | -1.08% | +13.21% | |
| Volatility (annualized) | 63.2% | 15.3% | |
| Max Drawdown | -56.8% | -56.5% | |
| Fund Family | VanEck | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 4, 2009 | Jan 22, 1993 |
HYD vs SPY Performance
VanEck High Yield Muni ETF (HYD) is a ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HYD returned +4.04% while SPY returned +21.71%. Year to date, HYD is down 1.37% versus a gain of 14.24% for SPY.
Over three years, HYD compounded at +3.20% per year against +22.10% for SPY; over five years the annualized figures are -1.08% and +13.21% respectively. Across the full 18-year window we track, SPY has the edge at +8.86% annualized vs +4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HYD has been the more volatile fund, with annualized monthly volatility of 63.2% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.8% for HYD and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYD charges 0.32% per year while SPY charges 0.09%. On a $10,000 position that is $32 vs $9 annually, a gap of $23 per year that compounds over a long holding period. On income, HYD currently yields 4.36% against 1.01% for SPY.
Holdings Overlap
HYD and SPY share 0 holdings out of 516 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HYD or SPY?
HYD has an expense ratio of 0.32% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, HYD or SPY?
Over the past year HYD returned +4.04% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), HYD annualized +4.75% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, HYD or SPY?
HYD has been the more volatile fund at 63.2% annualized versus 15.3% for SPY. Worst drawdown: HYD -56.8% vs SPY -56.5%.
Should I hold both HYD and SPY?
HYD and SPY have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYD and SPY?
HYD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 516 unique securities.
Which pays a higher dividend, HYD or SPY?
HYD yields 4.36% while SPY yields 1.01%, so HYD currently pays the higher dividend yield.
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